Apex Resources reports on further Beaufort Sea exploration with major players Imperial and Exxon preparing to spend $585 million on gas and oil exploration.

 

Salt Lake City, Utah – July 25, 2007 (PR Newswire) Apex Resources Group Inc. (OTC BB: APRX) reports on further Beaufort Sea exploration with major players Imperial and Exxon preparing to spend $585 million on gas and oil exploration.

 

The commitment is to explore for gas and oil in the offshore region of the Beaufort Sea over the next nine years. The Companies won exploration rights to a single parcel of 507,358 acres located approximately 88 miles from the Mackenzie Delta in the Northwest Territories.

 

ConocoPhillips obtained a license to explore 256,275 acres offshore and Chevron Canada picked up the rights to a third parcel.

 

These commitments coupled with the recent announcement that the Dene Tha First Nation received a $25 million land claim settlement with the Canadian Government is another positive step toward the approval for completion of the Mackenzie Valley Pipeline Project.

Apex Resources Group Inc. owns 3.745% working interest in the Itiyok 1-27 Well in the Beaufort Sea.  

 

The partners in the Itiyok 1-27 Well are as follows:


IMPERIAL OIL RESOURCES VENTURES 58.67312%

DEVON ARL CORPORATION 14.72%

PETRO - CANADA 14.20%

APEX RESOURCES GROUP INC. 3.745%

CONOCOPHILLIPS CANADA RESOURCES CORP. 3.003%

CANALANDS RESOURCES 2.255734%

CANADIAN NATURAL RESOURCES LIMITED 1.23445%

CANADIAN FOREST OIL LTD. 1.084348%

677862 ALBERTA LTD 1.084348%

 

The Itiyok 1-27 Well was originally drilled in 1983, at a total cost of CAD$85 million. A review of Well data and geological prognosis indicates that a 640 acre area would contain proven recoverable gas reserves of 108 Bscf and proven recoverable oil reserves of 8,976 MSTB, with Apex Resources Group Inc. 3.745 % working interest net reserves of 4.04 Bscf and 336 MSTB.

 

Seismic data indicates a structure closure of approximately 40 square KM with a gross potential reserve of 1.16 TCF and 160 MMSTB (Apex 3.745 % working interest net – 34 Bscf and 4.7 MMSTB). The lands in which the Apex Resources Group Inc. owns an interest comprised of 21.54 square KM containing gross potential reserves of 625 Bscf of gas and 86 MMSTB of oil Apex 3.745 % working interest net - 23.4 Bscf of gas and 3.2 MMSTB of oil). Values of proven, probable and possible gas and oil reserves, of Apex 3.745 % working interests, as per Citadel Engineering report, have been published in previous news releases.

 

At current oil & gas market prices, the Apex 3.745% working interest in the   Itiyok 1-27 well in the Beaufort Sea is valued as follows:

 

 

ITIYOK I-27 Significant Discovery Lease

 

 

 

 

 

Oil (US$/Barrell)

 

 $                75.0000

 

Gas (US$/ft3)

 

 $                   6.0000

 

Apex Share of Project

3.7450%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1) ITIYOK 640 ACRE PROVEN GAS & OIL RESERVES:

 

 

 

Total Dollars

Apex Dollars

 

Gas (Bscf)

108

 $            648,000,000.00

 $ 24,267,760.00

 

Oil (MM STB)

8.976

 $ 673,200,000.00

 $ 25,211,340.00

 

 

 

 $ 1,321,200,000.00

 $ 49,479,100.00

 

 

 

 

 

 

 

 

 

 

2) ITIYOK 40KM2 PROBABLE GAS & OIL RESERVES:

 

 

 

Total Dollars

Apex Dollars

 

Gas (TCF)

1.16

 $ 6,960,000,000.00

 $ 260,065,200.00

 

Oil (MM STB)

160

 $ 12,000,000,000.00

 $ 449,400,000.00

 

 

 

 $ 18,960,000,000.00

 $ 709,465,000.00

 

 

 

 

 

 

 

 

 

 

3) ITIYOK 21.54KM2 POSSIBLE GAS & OIL RESERVES:

 

 

 

Total Dollars

Apex Dollars

 

Gas (Bscf)

625

 $ 3,750,000,000.00

 $ 140,437,500.00

 

Oil (MM STB)

160

 $ 12,000,000,000.00

 $ 449,400,000.00

 

 

 

 $ 15,750,000,000.00

 $ 589,837,500.00

 

 

 

 

 

 

 

 

 

 

GRAND TOTAL

 

 

 

 

 

 

Total Dollars

Apex Dollars

 

Gas (Bscf)

 

 $ 11,358,000,000.00

 $ 425,357,100.00

 

Oil (MM STB)

 

 $ 24,673,200,000.00

 $ 924,011,340.00

 

 

 

 $ 36,031,200,000.00

 $ 1,349,368,440.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTES:

 

 

 

 

Bscf Gas = Billion standard cubic feet of Gas

 

 

TCF Gas = Trillion Cubic Feet of Gas

 

 

MM STB Oil - Million Stock Tank Barrels of Oil

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By the Board of Directors,

 

Apex Resources Group, Inc.

 

Investor Relations: 

Eric David & Sons

Ste # 501- 320

10 Schalks Crossing Road

Plainsboro, NJ 08536

 

Phone: (609) 529-3671

Website: ericdavid.com

Email: steveweiss@ericdavid.com

 

Apex Resources Group, Inc.

www.ApexResourcesGroup.com

John M. Hickey

Director

The foregoing contains forward-looking statements. For this purpose any statements contained in this document that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, such words a "may", "will", "believes", "anticipates", "estimates", "continue", or comparable terminology intends to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties and actual results may differ materially depending upon a variety of factors, including, but not limited to, the successful negotiation and execution of the definitive acquisition agreement and receipt of certain exhibits and schedules requested by Apex Resources Group, Inc.